Ratings agency Moody's has cut its price outlook for the both Brent crude and WTI, believing the rise in prices will take place at a much slower pace than originally forecast as oversupply and demand issues show no signs of waning.

The agency downgrade it price assumption in 2016 for Brent crude to $53 per barrel, down from $57. WTI was cut to $48 from $52 per barrel.

OPEC sees more demand for its crude in 2016
Moody's expects both prices to rise by $7 per barrel in 2017, which is down $5 per barrel from its prior forecast.

"We believe that oil prices will remain lower for a longer period, as large built-up inventories and oversupply cause oil prices to increase at a slower rate," said managing director of corporate finance at the group, Steve Wood.

"Although supply should begin to drop as capital spending declines, increased Iranian exports could place additional pressure on oil prices in 2016," he added.

Oil prices suffered on Monday following economic data from China, the world's largest energy importer, which showed its economy grew at the slowest pace in six years in the third quarter, according to official data released on Monday.

Brent for December delivery tumbled over $1 or 2.3 percent, at $49.31 a barrel in afternoon trade in London.U.S. crude for November delivery slipped 74 cents, or 1.6 percent, at $46.44 a barrel, recovering slightly from earlier losses.

The price of oil has collapsed from near $120 a barrel in June last year to lows of around $40 in August.

BP CEO: The low oil price is not all bad news
But the battered and bruised oil industry could see some upside in the medium term if it sticks with its period of cost cutting, according to Michele Della Vigna, co-head of European Equity Research at Goldman Sachs.

"Sentiment is changing," he told CNBC Monday. His team of research analysts closed its "underweight" rating on the European integrated oils sector last month. But, Della Vigna argued that fundamentals were also changing alongside investors' outlook.

"On the oil price, yes, we do still expect six to nine difficult months as we need to digest this oversupply. But, longer term, we start to see some adjustment mechanisms coming into place," he said.

He explained that U.S. shale production was slowing - Baker Hughes data on Friday confirmed that the oil rig count fell for a seventh consecutive week. He also said that two of the big engines of production growth - Iraq and Saudi Arabia - would "probably" see also slower growth in production.

Oil demand growth to slow but OPEC keeps pumping
"If we look forwards, the key thing will be: 'Can Big Oil cut costs substantially, improve capital efficiencies, so that they rebuild their free cash flow which has been eroded in the last ten years?'," he said.

Major oil producers in Europe, and the U.S., have been busy with restructuring and cost-cutting since oil's dramatic fall began in mid-June last year. It hasn't stopped yet, however, with France's Totalannouncing a deal to sell a 15 percent stake in a Norwegian oil field on Monday.

Bob Parker, a senior advisor at Credit Suisse, told CNBC Monday that it was now a "cost-cutting" industry and predicted that earnings will simply be driven by consolidation. Free cash flow and a potential dividend for shareholders can only be sustainable if the sector cuts operational and capital expenditure by 30 to 40 percent, Della Vigna added.

The dramatic fall in prices was due to weak demand, a strong dollar and booming U.S. oil production, according to the International Energy Agency (IEA). However, OPEC's (Organization of the Petroleum Exporting Countries) reluctance to cut output has also been seen as a key reason behind the fall.

On Monday, the Iranian oil minister signaled that he didn't expect a change in production output when OPEC meet in December to decide on its quota, according to Dow Jones. Bijan Namdar Zangeneh also said that OPEC members would be satisfied with oil prices above $70 a barrel, the news agency reported.

Dnari131: Michel Camdessus, former president of IMF: SDR participate moment has come to RMB

Published: 2015-10-22 12:44:51
"China in RMB internationalization course do very well, very solid step by step, not only to ensure the Chinese economy own invariance, but also for the world economy to make a major contribution unchanged." Michel Camdessus on the central wide network reporter implied. When asked whether the support of RMB coins participate SDR basket, Michel Camdessus tacit support to act decisively, and that "the hour of the yuan to the SDR participate." ("I believe that it's time for it to take place.")

From the November IMF SDR basket restart deliberations coins draws near, Michel Camdessus stated that the RMB will bring many changes to get involved SDR China, the world will also be a new major of de novo consideration of China . "China's very large length commercial country, the world is very important, China Numismatic coins become SDR basket of a sector is also very important, will greatly promote the role of international trade." Michel Camdessus said.

Michel Camdessus to China in 1997 Asian financial crisis, the 2008 global financial crisis, the euro crisis elucidation implied appreciation, he believes that China has a very successful history and experience in the same system of promoting international coin In the new international coin system sideways, China and the yuan will play a very major role.

Asian investment bank and equipment financing measures to help construct the foundation of a new international financial order to open

Ministry of Finance announced on the 12th news that Poland has recently signed the "Agreement on the Asian investment banking foundations measures," So far, signatories of the agreement has increased to 53, expected to be completed before the end of the French constitution entered into force, Asian investment bank was established.

Michel Camdessus pointed out that the establishment of the basic measures in Asia investment banking is an excellent initiative, the foundation of the world's nations need to measure equipment investment, Asian countries like Indonesia, the Philippines, Vietnam and other countries are also required to finance the foundation of the measures, the Asian roots measures Investment Bank will become a new international financial order, a department.

How the definition of a new international financial order, this problem so that thirteen years in charge of IMF Michel Camdessus has subsided a bit. The new international financial order that he summarized as: every small I think this order is reasonable, each country believe that this order represents the rules need to be created by itself, the order of the Central Organization have the powers needed to make perhaps the creation of the world up in scale, this order so that all organizations committed to sustainable growth perhaps, eliminate poverty, coping weather change, the world supply of real need, and let each person can feel.

Michel Camdessus pointed out that the world needs the active involvement of all segments of subscribers, careful cooperation, a certain part of intervenors out, it will affect the world changed. He implied waiting G20 (G20) have a new change, so part of the intervenors and the emerging countries like China, the United States, European countries, Japan, perhaps as a collaborative approach - and managed to grow a sustainable world.

IMF took the lead in China need low share of the voting weights should be significantly promoted

Some judge noted that the international financial order to the IMF and the World Bank as the pillar no longer conform to the current economic situation. IMF's quota-based GDP, the ability to save and international economic savings to arrange, but China and other fast-growing economies of emerging countries at the World economy status has not been reflected in the substantial voting rights in the IMF, such as the right to vote a weight of 16.7 US %, and as the world's second largest economy, China, in the IMF's voting weight of only 3.8 percent.

Michel Camdessus said the IMF also responded to arrange voting weights very wrong reason, he believes necessary IMF were deep, widespread and innovation, while the share of ASDC is one of the urgent need for the IMF took the lead.

According to World Bank statistics, the BRIC countries (BRICS) 2014 gross domestic production (GDP) reached $ 33.1 trillion, an increase of 7.5%, while the Group of Seven (G7) of GDP was $ 34.5 trillion, China, India, economies of scale in Russia, Brazil, South Africa, the five BRICS countries have been close to developed countries.

"China's voting rights at the IMF in the amount of weight should match the economies, the proportion of voting rights should be given too low a significant promotion. China's economy to grow endless, IMF voting rights proportion should cease promotion place." M Michel Camdessus of the CNR network reporter implied.
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